2022 Georgia Code
Title 33 - Insurance
Chapter 24 - Insurance Generally
Article 1 - General Provisions
§ 33-24-59.31. When a Value-Added Product or Service Is Not an Unfair Trade Practice or Unlawful Inducement

The following shall not be construed as an unfair trade practice under subsection (b) of Code Section 33-6-4 or an unlawful inducement under subsection (c) of Code Section 33-9-36:

1. An insurer or insurance producer, by or through employees, affiliates, or third-party representatives, may offer or provide a value-added product or service at no or reduced cost when such product or service is not specified in the policy of insurance when:
   1. The value-added product or service relates to the insurance coverage;
   2. The value-added product or service is offered in a manner that is not unfairly discriminatory, and the availability of the value-added product or service is based on documented objective criteria that is maintained by the insurer or insurance producer and produced upon request by the Commissioner;
   3. The cost to the insurer or insurance producer for offering or providing the value-added product or service is reasonable in comparison to the premiums or insurance coverage for the policy class; and
   4. The value-added product or service is primarily designed to:
      1. Provide loss mitigation or loss control;
      2. Reduce claim costs or claim settlement costs;
      3. Provide education about liability risks or risk of loss to persons or property;
      4. Monitor or assess risk, identify sources of risk, or develop strategies for eliminating or reducing risk;
      5. Provide post-loss services; or
      6. Encourage behavioral changes to reduce the risk of death or disability of a customer or potential customer that is a policyholder, potential policyholder, certificate holder, potential certificate holder, insured, potential insured or applicant; and
2. When an insurer or insurance producer does not have sufficient evidence but has a good-faith belief that the value-added product or service meets the criteria in subparagraph (D) of paragraph (1) of this Code section, the insurer or insurance producer may offer or provide a value-added product or service in a manner that is not unfairly discriminatory as part of a pilot program for no more than a year. An insurer or insurance producer must notify the Commissioner prior to implementing the pilot program and may proceed with such program unless the Commissioner objects in writing within 21 days of notice.

History. Code 1981, § 33-24-59.31 , enacted by Ga. L. 2022, p. 289, § 1/HB 1059.

Effective date.

This Code section became effective July 1, 2022. See Editor’s notes for applicability.

Code Commission notes.

Pursuant to Code Section 28-9-5, in 2022, Code Section 33-24-59.31, as enacted by Ga. L. 2022, p. 578, § 2-1/HB 733, was redesignated as Code Section 33-24-59.32.

Editor’s notes.

Ga. L. 2022, p. 289, § 2/HB 1059, not codified by the General Assembly, makes this Code section applicable to all policies or contracts issued, delivered, issued for delivery, or renewed in this state on or after July 1, 2022.